Tax Guidance

The guidance available here explains the general guides rather than detailed discussions of Iowa tax law. We make every attempt to keep guidance current, however, changes in law or policy may not be immediately reflected.

If you have tax questions, search our Frequently Asked Questions.

Tax Guidance

Tax Type:
Sales & Use Tax

The 2020 Iowa legislature defined the term “computer peripheral” and added that term to the existing sales tax exemption for computers used in processing or storage of data or information by an insurance company, financial institution, or commercial enterprise (see Iowa Code section 423.3(47)). The Department is providing the following guidance, including non-exhaustive lists of devices, so taxpayers know whether certain devices are taxable or exempt as a computer or computer peripheral.

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Tax Type:
Sales & Use Tax

On June 29, 2020 Governor Reynolds signed into law House File 2641. House File 2641 enacted several changes and clarifications to Iowa tax laws on topics of administration, income, sales, and property tax. This is intended to be a basic overview of the sales and use tax provisions of this Act.

The Iowa tax laws that were revised included: Computer Peripherals, Updates to Certain Digital Products and Services, Preserve Whitetail Hunting Exemption, Tribal Governments, Exemptions and Refunds on Certain Construction Projects, Manufactured Housing Use Tax Rate, Sales and Use Collection Obligations, Snowmobile and ATV Sales Tax Collection

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Tax Type:
Sales & Use Tax, Iowa Tax Reform

In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. Beginning January 1, 2019, digital goods or service may be subject to sales tax, applicable local option sales tax, and use tax, depending on various factors. This guidance explains what is subject to tax including computer software, specified digital products including webinars, the sale of storage services, and information services. Additionally, this guidance provides further information regarding exemptions to taxation.

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Tax Type:
Sales & Use Tax

A multi-function device (“MFD”), also known as a multi-function printer, is office computer equipment that incorporates the functionality of multiple office machines. The most common example of a MFD is the all-in-one-print, scan, email and photocopier used in many offices.

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Tax Type:
Sales & Use Tax

Newly enacted Iowa legislation makes several changes to the existing sales and use tax exemption found in Iowa Code section 423.3(47). Effective July 1, 2016 the sales and use tax exemption for certain computers, machinery, equipment, and replacement parts will be expanded to include “supplies,” a category of items used in the manufacturing process that has been considered taxable under administrative rule. The legislation has created new definitions for both “replacement parts” and “supplies.”

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